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Hauptverfasser: Gallardo, Marcelo, Loaiza, Manuel, Chávez, Jorge
Format: Preprint
Veröffentlicht: 2024
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Online-Zugang:https://arxiv.org/abs/2410.07363
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author Gallardo, Marcelo
Loaiza, Manuel
Chávez, Jorge
author_facet Gallardo, Marcelo
Loaiza, Manuel
Chávez, Jorge
contents We introduce a novel model based on the discrete optimal transport problem that incorporates congestion costs and replaces traditional constraints with weighted penalization terms. This approach better captures real-world scenarios characterized by demand-supply imbalances and heterogeneous congestion costs. We develop an analytical method for computing interior solutions, which proves particularly useful under specific conditions. Additionally, we propose an $O((N+L)N^2 L^2)$ algorithm to compute the optimal interior solution. For certain cases, we derive a closed-form solution and conduct a comparative statics analysis. Finally, we present examples demonstrating how our model yields solutions distinct from classical approaches, leading to more accurate outcomes in specific contexts, such as Peru's health and education sectors.
format Preprint
id arxiv_https___arxiv_org_abs_2410_07363
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Congestion and Penalization in Optimal Transport
Gallardo, Marcelo
Loaiza, Manuel
Chávez, Jorge
Optimization and Control
Theoretical Economics
91B68 (Primary) 90C20, 90C25 (Secondary)
We introduce a novel model based on the discrete optimal transport problem that incorporates congestion costs and replaces traditional constraints with weighted penalization terms. This approach better captures real-world scenarios characterized by demand-supply imbalances and heterogeneous congestion costs. We develop an analytical method for computing interior solutions, which proves particularly useful under specific conditions. Additionally, we propose an $O((N+L)N^2 L^2)$ algorithm to compute the optimal interior solution. For certain cases, we derive a closed-form solution and conduct a comparative statics analysis. Finally, we present examples demonstrating how our model yields solutions distinct from classical approaches, leading to more accurate outcomes in specific contexts, such as Peru's health and education sectors.
title Congestion and Penalization in Optimal Transport
topic Optimization and Control
Theoretical Economics
91B68 (Primary) 90C20, 90C25 (Secondary)
url https://arxiv.org/abs/2410.07363